Coaching Cuts: Taking on Work for Friends and Family
Description
We tackle the delicate balance of working with friends and family in the contracting business, focusing on proper pricing strategies to maintain both relationships and profitability.
• Never give upfront discounts to friends and family
• Always build in extra padding (35% profit minimum) for unexpected issues
• Story about refinishing hardwoods for a relative and the importance of having cushion
• If everything goes well, you can discount the final invoice down to 25% profit
• Minimum 25% profit necessary to cover business overhead (which averages 21%)
• Opportunity to be a "double hero" by giving unexpected discount after job completion
• Average contracting business has 21% overhead costs on every dollar
• Working at cost or minimal markup actually costs you money in the long run
Visit ProStruct360.com to learn more about our coaching services or to schedule a free 30-minute consultation. Our software can help run your contracting business from estimate to final invoice.
Have a question or an idea to improve the podcast?
Email us at team@prostruct360.com
Want to learn more about our software or coaching?
Visit our website at ProStruct360.com
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